This hacking crap WILL be the main thing that keeps bitcoin from going to the general population.Who besides software guru's & REAL puter nerds will understand how to secure either thier PC or logins to such an extreme level

I doubt it. It will just require Bitcoin "providers" (wallet developers, ewallets, exchanges, etc) to take security more serious.

A couple examples:a) MtGox could check passwords against weak/known password list and exclude themb) MtGox could require 2nd factor authentication for accounts over certain value (my broker does).c) MtGox could implement a delay with notification (you get notification BEFORE the withdrawal occursd) MtGox could limit withdrawals to a specific list of whitelisted addresses.

In time hardware secured local wallets can make Bitcoin theft from local wallets much more difficult even if the wallet exists on a system which is infected with malware.

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Until there is a way to "backup" BTC like a bank does (reimburse for specific reasons),whether with insurance or something similar,BTC will be used mainly by launderers & drug dealers (Silk Road)................

That will simply never happen. Due to the nature of Bitcoin it is simply impossible to prove you didn't withdraw those coins to a new address. No insurance company would offer a policy to cover that.

Except most people will just enter their password there.You can trust them all you want, but don't tell people to do it.

Right click > View Source. Hmm yup the javascript is hashing the password using SHA-1 function and the only data sent to the server is the SHA-1 hash.

Your point again?

By your logic nobody should use Bitcoin. While the source code is open and available unless someone has read it themselves every single line they should never recommend Bitcoin to anyone else and even if they do recommend it they should only do so to people who are capable of reading the entire source code line by line.

Which is why Bitcoin is only used by Satoshi and 3 guys from MIT with masters degrees in computer science and cryptography.